Lawrence Jengar
Aug 30, 2024 19:43
The Hong Kong Financial Authority has fined WeChat Pay Hong Kong Restricted HK$875,000 for contravening anti-money laundering rules.
The Hong Kong Financial Authority (HKMA) has introduced a disciplinary motion in opposition to WeChat Pay Hong Kong Restricted (WPHK) for violations underneath the Fee Methods and Saved Worth Services Ordinance (PSSVFO). Based on the HKMA, WPHK is required to pay a pecuniary penalty of HK$875,000 for failing to fulfill regulatory requirements.
Particulars of the Violation
The HKMA’s investigation, which coated the interval from August 25, 2016, to October 24, 2021, discovered that WPHK didn’t have ample techniques in place to adjust to anti-money laundering (AML) and counter-financing of terrorism (CFT) tips. The recognized deficiencies had been primarily in two areas:
Endeavor buyer due diligence (CDD) critiques upon set off occasions.
Making use of enhanced due diligence measures in high-risk conditions to mitigate cash laundering and terrorist financing dangers.
Components Thought of in Disciplinary Motion
The HKMA took a number of components into consideration when deciding the disciplinary motion:
The seriousness of the investigation findings.
The necessity to ship a transparent deterrent message to the trade concerning the significance of efficient AML and CFT controls.
Remedial measures taken by WPHK to deal with the deficiencies.
WPHK’s self-reporting of the matter to the HKMA.
WPHK’s lack of earlier disciplinary data and its cooperation in resolving the recognized points.
Official Statements
Raymond Chan, Govt Director (Enforcement and AML) of the HKMA, emphasised the significance of SVF licensees making use of enhanced due diligence measures in probably high-risk conditions. “These enhanced due diligence measures ought to be efficient in making certain that the related cash laundering and terrorist financing dangers are correctly managed,” Chan said.
For additional data, the official assertion of disciplinary motion will be accessed from the Hong Kong Financial Authority.
Trade Implications
This disciplinary motion serves as a big reminder to all saved worth facility (SVF) licensees in Hong Kong concerning the important necessity of sustaining sturdy AML and CFT controls. The HKMA’s determination highlights the regulatory physique’s dedication to making sure monetary techniques’ integrity and sending a transparent message on the results of non-compliance.
Picture supply: Shutterstock
